Real Estate

Canadians added an incredible $127-billion to their savings in the first half of the year

  • Last Updated:
  • Sep 19th, 2020 10:32 am
[OP]
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Feb 22, 2011
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Canadians added an incredible $127-billion to their savings in the first half of the year

I think real estate is about to see a huge surge in demand. A lot of dual income professionals having been saving a fortune with reduced expenses and spending and those promo saving rates are coming to an end.

Where is all this money going to end up? People aren't just going to sit on cash forever. Stocks are at an all time high and people will look to real assets as a hedge against inflation and rampant money printing.

https://www.theglobeandmail.com/investi ... ut-can-do/
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Jul 8, 2010
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Is this during the same time of the 180 billions deffered mortgage payments?
As you are one of those that deffered mortgage payments, did you invest the money or put in savings?

P.S. still scratching my head on how they calculated those 127 billions... links to articles from the original one and after 4 articles, still nothing yet...
[OP]
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Feb 22, 2011
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Isostar wrote: Is this during the same time of the 180 billions deffered mortgage payments?
As you are one of those that deffered mortgage payments, did you invest the money or put in savings?

P.S. still scratching my head on how they calculated those 127 billions... links to articles from the original one and after 4 articles, still nothing yet...
Well I didn't because I have a precon closing next year and I needed to come up with another $20k so this was a cheap easy way to do it. But now my cash is approaching $50k and my tangerine 2.5% savings promo is ending so I will have to start looking for an investment.

Also the $127 billion figure is extra cash in chequing and savings, so even if it's from deferals people have the cash in account, not just deferred because they couldn't afford it. So even if you are right it's from that it would dispel the mortgage cliff theory.
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People don’t need to pay for vacations, car usage is down, and visits to restaurants are more infrequent. There is less money to spend. Makes sense! Pushes real rates down!
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[OP]
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CondoMan98 wrote: People don’t need to pay for vacations, car usage is down, and visits to restaurants are more infrequent. There is less money to spend. Makes sense! Pushes real rates down!
Well for me it's;

$300 not using gas to drive to work

$350 wife not taking train

$500 not going out, lunches, take out

$500 not traveling

$250 a month on mortgage interest

That is almost an extra $2k a month in savings.
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mazerbeaner wrote: Well for me it's;

$300 not using gas to drive to work

$350 wife not taking train

$500 not going out, lunches, take out

$500 not traveling

$250 a month on mortgage interest

That is almost an extra $2k a month in savings.
I’m using all of my extra savings to pay down my HELOC. I had plans to pay it off in a couple of years but it’s being paid off so much faster because of lower rates and less spending.

People will criticize and say why pay off if rates are so low. Things can change and who doesn’t want to be debt free! Face With Tears Of Joy
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[OP]
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CondoMan98 wrote: I’m using all of my extra savings to pay down my HELOC. I had plans to pay it off in a couple of years but it’s being paid off so much faster because of lower rates and less spending.

People will criticize and say why pay off if rates are so low. Things can change and who doesn’t want to be debt free! Face With Tears Of Joy
Nice, I am just saving cash, not really sure why and should probably figure out what to do with it. I could pay off my car but interest is 1.99%. Mortgages are 1.55% and 1.97%. Nothing else to pay off.
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mazerbeaner wrote: Nice, I am just saving cash, not really sure why and should probably figure out what to do with it. I could pay off my car but interest is 1.99%. Mortgages are 1.55% and 1.97%. Nothing else to pay off.
It is always good to have some cash too. Things are so volatile right now. I was playing the market, but made some money and got out. I can't afford to lose any money right now, so staying the heck away from the financial casino!

I have condos to close on in 4-6 years and I will also need cash to close and I co not want a HELOC with a balance then. So gotta pay this stuff off!

It is kind of nice not having debt though. You can be more wasteful with your money. I am all about savings and being smart. But sometimes, you gotta splurge! You will go crazy if you live like Scrooge every day of your life.
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I'm not saving any money at all. Too many deals on RFD! Too many going out of business sales! Someone help save me from online shopping!!!
TEAM CANADA!!!!!!!!!!!
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This pandemic is interesting unlike the financial crisis in 2008, the class from the upper middle and the above not only didn't get impacted, their net worth are actually increasing (gold. btc, stocks and re). The lower middle class and the below are struggling to find meaningful employment as a lot of small business owners are closing down their business permanently. Higher taxes for higher wage earners and passive income is inevitable, as the Libreals already emphasizing the inequality outcome of Covid19.
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Gotta say...I saved tens of thousands of dollars, no deferrals and a wife on mat leave. There is nothing to do. No restaurants, no basketball games, no travelling, no exhibitions, no bars, no TTC, no buying lunch outside, no weekend trips, nothing. All that money saved.
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mazerbeaner wrote: I think real estate is about to see a huge surge in demand. A lot of dual income professionals having been saving a fortune with reduced expenses and spending and those promo saving rates are coming to an end.

Where is all this money going to end up? People aren't just going to sit on cash forever. Stocks are at an all time high and people will look to real assets as a hedge against inflation and rampant money printing.

https://www.theglobeandmail.com/investi ... ut-can-do/
Not condos though.

As for the houses and townhouses, how long do you think they will go up? Mortgage deferrals will stop soon I'm guessing.
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masterhapposai wrote: Not condos though.

As for the houses and townhouses, how long do you think they will go up? Mortgage deferrals will stop soon I'm guessing.
Detached and towns will continue to go up. Short term there may be a quick plateau or small dip but long term, it will just keep going up. Look up RE values in Toronto for the last 20 to 30 years. The graph basically shows an upward trend.

Now, if the government decides to do some weird and unpopular things to try and slow it down like what they did in April of 2017, then who knows but with the rates being this low and the demand for bigger houses due to WFH and covid still there, it will go up.
TEAM CANADA!!!!!!!!!!!
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our government added way more in debt though
[OP]
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masterhapposai wrote: Not condos though.

As for the houses and townhouses, how long do you think they will go up? Mortgage deferrals will stop soon I'm guessing.
Why not condos? They were occupied before, the people who left went somewhere. I suspect a lot of students and young professionals moved back with their parents due to wfh.

They won't stay at their parents forever, eventually they will move out and they probably won't be able to afford $1.5 million for a house.

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